Milk and Cream Processing in Australia - Industry Market Research Report

Cream of the crop: Growing demand for fresh milk in export markets has boosted revenue

Milk and cream processing revenue has grown robustly over the past five years, despite volatile conditions in the domestic market. Rising demand for Australian milk in export markets and higher prices has boosted revenue over the period, while falling domestic production and consumption have constrained growth. Revenue is expected to grow at an average annual rate of 3.2% over the five years through 2022-23, to $4.3 billion. Revenue is anticipated to increase by 2.9% in 2022-23, with a sharp rise in prices outweighing a fall in production. Profitability has fallen over the past five years as operating costs have increased.

Industry operators primarily pasteurise and separate raw milk to make milk and cream products with varying amounts of fat content. The industry excludes cultured buttermilk, flavoured milk (whole and skim), sour cream and yoghurt manufacturing.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.